In a conference call to press this afternoon, the FCC announced that it will grant AT&T’s request to formally withdraw its application to acquire T-Mobile US. In addition, the agency will also release a 109-page report today that discusses what it found over nine months of reviewing the merger. In short, the FCC found that the cons of the deal outweighed the pros, and AT&T is likely to build out its LTE network regardless of what happens with the carrier’s buyout of T-Mobile. The report determined that the merger would create too many network inefficiencies and job losses, and whatever cost savings that would be generated by the deal wouldn’t be passed on to the customer.

While the FCC won’t pursue the draft order signed by Chairman Julius Genachowski mandating the merger be brought before a Federal judge, AT&T isn’t completely done. It’s become a great deal harder — its dealings with the Department of Justice are still looming, and in the meantime Reuters is reporting that the carrier’s in talks with Leap Wireless to sell some of T-Mobile’s assets — mainly as a last-ditch effort to still gain the support of both governmental agencies. So this saga is far from over, but opponents of the merger can still sigh a breath of relief. Follow the break for AT&T and Sprint’s official responses to today’s decision.

Update: The report is now available! Head here to read all 109 pages of it.